Tax and your investments

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3. Keeping records

You must keep adequate records to:

• Keep track of your investments
• Establish your tax liabilities

Here are three records, which have stood the test of time:

• Dividend record - record dividends as they arise and analyse into the categories required in your tax return.


• Stock record - one sheet per item of stock will enable you to follow a holding throughout its life in your hands.


• Annual summary - every time you buy or sell make an entry. This will enable you to extract detailed information to complete your tax return.

Remember that you have a legal obligation to keep records for at least six years following each tax year.

1. Keeping it legal 2. How HMRC treats your investment income 3. Keeping records 4. The basis of dividend income 5. Dividend income 6. Interest income 7. Interest on Treasury Stock 8. Capital gains tax basics 9. Base cost 10. Indexation 11. Taper relief 12. Indexation and taper relief - together! 13. Date of acquisition 14. Disposal proceeds 15. Disposal of a holding with a history 16. Takeovers 17. Bonus/scrip issues 18. Share splits 19. Buybacks 20. Rights issues 21. Share options 22. Beneficiaries and minors 23. Calculating your CGT liability 24. Using your annual CGT exemption 25. Transfers between spouses 26. ISAs 27. Delaying capital gains 28. Other tips to reduce CGT liability 29. Conclusion